will be huge!, page-12

Hi cdchi1

The tax break down is in that favorite report of yours. Yes the good old Mercury report LOL


Cheers


Page 2

Standard onshore Brazilian fiscal terms – 10% State royalty, 1% landowners’ royalty
and 34% corporate tax. An additional 9.25% royalty-type tax has also been included to
allow for non-recoverable indirect taxes (PIS and COFINS), albeit the costs of goods
and materials can be credited against these taxes, in which case, reasonable
accountancy rules would suggest 50-60% tax recovery of these indirect taxes, further
improving overall economics. It has been assumed that these terms will not change over
the life of the fields.